Rydex announces plans to offer Emerging Markets Bond Strategy Fund

By Toni Weeks

San Luis Obispo, Calif., May 15 - Rydex Series Funds announced in an N-1A filing with the Securities and Exchange Commission its plans to offer a new emerging markets fund.

The Emerging Markets Bond Strategy Fund will seek to provide investment results that correlate, before fees and expenses, to the performance of the emerging markets bond market. Under normal circumstances, the fund will invest at least 80% of its net assets, plus any borrowings for investment purposes, in financial instruments that, in combination, have economic characteristics similar to the emerging markets bond market.

The fund will invest primarily in credit default swaps, U.S. Treasury futures and fixed-income instruments. The fund will normally be a seller of credit protection as it seeks to gain exposure to the emerging market bond market but may also buy credit protection from time to time, such as in times of heavy redemption activity. The fund also expects to invest in exchange-traded funds, swap agreements, derivatives and other financial instruments with economic characteristics comparable to that of the emerging markets bond markets.

The fund may buy debt securities to collateralize its derivative investments for liquidity purposes or to enhance yield. It may also invest without limitation in sovereign debt securities denominated in dollars or foreign currencies.

Michael P. Byrum and Ryan A. Harder will be the portfolio managers.

The fund will offer A-class and C-class shares. Ticker symbols have not been set.

Shareholder fees will consist of a 4.75% sales load for A-class shares and 1% maximum deferred sales load for C-class shares.

Management fees of 0.75% are included in the total annual fund operating expenses of 1.25% for A-class shares and 2.25% for C-class shares.

Rockville, Md.-based Security Investors, LLC, which operates under the name Guggenheim Investments, is the investment adviser to the fund.

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